June ethylene contracts in the US were expected to move higher on the back of gains in feedstock ethane earlier in the month, sources told Platts. Participants said it was still early and negotiations had yet to begin but the expectation was a possible three cents/lb gain.
“It will most likely be next week before buyers and sellers feel they have enough June data to engage in serious settlement discussions,” said one source. Any increase would be largely driven by upward price movement in June spot pricing. On June 1, spot ethylene was assessed at 23.625 cents/lb and later climbed to 23.375 cents/lb on June 11, driven by increases in ethane. Since that time, spot values have fallen back and were assessed at 26.125 cents/lb on June 18. Offers were seen Monday at 26.50 cents/lb MtB Equ and 26.25 cents/lb MtB Equ with no corresponding bids. If the June US ethylene contract settles up three cents/lb, the net contract price in June would be at 33.50 cents/lb.